Philippines reducing rice import tariff

decrease font size  Resize text   increase font size       Printer-friendly version of this article Printer-friendly version of this article

The Philippines, one of the world's biggest rice buyers, will loosen restrictions on imports of the grain, potentially boosting opportunities for key suppliers in the region such as Vietnam and Thailand.

The Southeast Asian nation plans to reduce tariffs on imports, with a charge of 35 percent on total annual shipments up to 805,200 tonnes, and 50 percent beyond that level, Agriculture Undersecretary Segfredo Serrano told reporters. The current tariff is 40 percent on shipments up to 350,000 tonnes, and 50 percent beyond that point.

Serrano, discussed the details of a recent agreement between the Philippines and major rice exporters, said the new duty rates would last until 2017.

"It's a done deal," he said, adding that the Philippines expects formal approval of the move from the World Trade Organization (WTO) next month. "It will take effect immediately."

But doubts remain about whether the new tariffs are low enough to encourage private buyers to ship more rice into the Philippines.

"It's still high at 35 percent. I think a 10- to 20-percent tariff would be a good level," said a Manila-based rice trader, declining to be named as he was not authorized to speak with media.

Easing the restrictions on rice imports has been a hot trade issue in the Philippines, with the government pushing to keep the high tariffs to protect local farmers despite the country's commitment to support the removal of global trade barriers.

Rampant Smuggling

High tariffs have been blamed for rampant smuggling of the grain into the Philippines, where prices in recent weeks have been 20 percent higher than the same time last year after Typhoon Haiyan devastated key growing regions.

The government does not issue data on private rice imports, but traders have told Reuters that shipments this year would likely be well below 350,000 tonnes.

The state grains procurement agency, the National Food Authority (NFA), is allowed to import rice tariff free, however.

The Philippines has already bought a total of 1.3 million tonnes from Vietnam, the world's number two exporter of the grain after India, in deals over the last seven months. On Thursday, it said it would purchase another 200,000 tonnes of rice from the country.

Buyers Guide

Doyle Equipment Manufacturing Co.
Doyle Equipment Manufacturing prides themselves as being “The King of the Rotary’s” with their Direct Drive Rotary Blend Systems. With numerous setup possibilities and sizes, ranging from a  more...
A.J. Sackett Sons & Company
Sackett Blend Towers feature the H.I.M, High Intensity Mixer, the next generation of blending and coating technology which supports Precision Fertilizer Blending®. Its unique design allows  more...
R&R Manufacturing Inc.
The R&R Minuteman Blend System is the original proven performer. Fast, precise blending with a compact foot print. Significantly lower horsepower requirement. Low inload height with large  more...
Junge Control Inc.
Junge Control Inc. creates state-of-the-art product blending and measuring solutions that allow you to totally maximize operating efficiency with amazing accuracy and repeatability, superior  more...
Yargus Manufacturing
The flagship blending system for the Layco product line is the fully automated Layco DW System™. The advanced technology of the Layco DW (Declining Weight) system results in a blending  more...
Yargus Manufacturing
The LAYCOTE™ Automated Coating System provides a new level of coating accuracy for a stand-alone coating system or for coating (impregnating) in an automated blending system. The unique  more...
John Deere
The DN345 Drawn Dry Spreader can carry more than 12 tons of fertilizer and 17.5 tons of lime. Designed to operate at field speeds up to 20 MPH with full loads and the G4 spreader uniformly  more...
Force Unlimited
The Pro-Force is a multi-purpose spreader with a wider apron and steeper sides. Our Pro-Force has the most aggressive 30” spinner on the market, and is capable of spreading higher rates of  more...
BBI Spreaders
MagnaSpread 2 & MagnaSpread 3 — With BBI’s patented multi-bin technology, these spreaders operate multiple hoppers guided by independent, variable-rate technology. These models are built on  more...

Related Articles

Comments (0) Leave a comment 

e-Mail (required)


characters left

Smooth Wall Grain Bins

Meridian’s SmoothWall bins are the ultimate storage bins, used to handle and store fertilizer, grain, feed and seed, and extend ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form